Franklin Street announced today the sales of two multifamily apartment properties in Metro Atlanta for a combined $14.35 million. Salem Chase Apartments in Conyers, Georgia, and Delta Appletree Apartments in southwest Atlanta were both purchased by out-of-state investors, indicating how Atlanta’s strong metro growth is continuing to attract the interest of individuals across the country. Franklin Street’s Jake Reid and Roger Schoerner represented the sellers.
Franklin Street arranged the $5.65 million sale of the Salem Chase Apartments, a 64-unit rental community located at 50 Salem Chase Drive – roughly 20 miles east of downtown Atlanta.The complex is made up of well-maintained one, two, and three-bedroom units and sits on nearly 10 acres. The property is within walking distance of retail and restaurants, and a few miles from Stonecrest Mall, Warner Brother movie studios, and the rapidly expanding Stonecrest Sports Complex. The buyer, from New York, expects to see continued upside as the surrounding area improves.
“Secondary markets appeal to investors seeking a stronger yield as they usually consist of properties outside of the investment criteria of many buyers, helping investors avoid greater competition,” said Jake Reid, a senior director for Franklin Street’s multifamily brokerage team in Atlanta. “The record setting pricing of this asset illustrates that buyers are willing to spend a premium to get a physically superior investment at a lower cap rate.”
Franklin Street arranged the $8.7 million sale of Delta Appletree Apartments, a 210-unit complex located at 2328 Campbellton Road in Atlanta. The transaction set a new pricing high for the southwest Atlanta submarket. Franklin Street represented the New Jersey-based seller in this transaction and worked with the lender to illustrate the operational upside, resulting in strong agency terms for the buyer.
“Delta Appletree represents a great property for investors seeking markets with limited new construction and shrinking amounts of affordable housing,” said Roger Schoerner, an associate in Franklin Street’s Atlanta office. “High construction costs create an economic barrier to entry to more affordable markets, driving increased investor demand to markets just beginning to witness the potential rent growth.”
About Franklin Street: Celebrating more than 10 years in the business, Franklin Street is a family of full-service commercial real estate companies focused on delivering value-add solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise and experience of each of its divisions – Real Estate, Capital, Insurance, Management and Valuation – Franklin Street offers unmatched value and optimal solutions for clients nationwide. Learn more about Franklin Street at FranklinSt.com.